📊 LC Key Takeaways
Is LendingClub Corp (LC) a Good Investment?
LendingClub demonstrates a critical disconnect between accounting profitability and cash generation, with operating cash flow of -$619M despite reported net income of $51.6M. The company is burning significant cash (-$644.8M FCF) while carrying $10.4B in liabilities against only $1.5B equity, and cannot cover interest expenses from operating income (0.8x coverage ratio). Combined with declining revenue (-3.7% YoY) and minimal returns on capital (3.4% ROE), the fundamental business is deteriorating.
Profitability has improved materially with double‑digit operating and net margins and strong YoY EPS growth, supported by a sizable cash position and no long‑term debt. However, revenue is contracting and cash generation is deeply negative, while very low interest coverage indicates pressure from funding costs. Maintain a neutral stance until cash flow stabilizes and interest expense is better covered.
LendingClub Corp Key Strengths (LC)
- Strong reported net margin of 19.8% and operating margin of 25.8%
- Substantial cash reserves of $821.9M providing near-term liquidity buffer
- Zero long-term debt reducing refinancing risk in current structure
- Significant YoY net income and EPS growth
- Healthy profitability (18.4% operating margin; 14.1% net margin)
- Solid liquidity profile with $930M cash and no long‑term debt
LC Stock Risks: LendingClub Corp Investment Risks
- Severe negative operating cash flow of -$619M signals poor earnings quality and unsustainable business model
- Interest coverage ratio of 0.8x indicates inability to cover interest from operations—existential solvency risk
- Massive negative free cash flow of -$644.8M with 87.4% liability-to-asset ratio creates debt sustainability crisis
- Revenue declining 3.7% YoY while returns on capital are negligible (3.4% ROE, 0.4% ROA)
- Top‑line decline (-3.7% YoY revenue)
- Very weak cash flow (large negative OCF and FCF)
- Low interest coverage (0.5x) indicates sensitivity to funding costs
Key Metrics to Watch
- Operating Cash Flow trend (must turn positive)
- Debt service coverage ratio and total liabilities trajectory
- Revenue stabilization and return to growth
- Loan portfolio quality and credit loss provisions
- Interest coverage
- Operating cash flow
LendingClub Corp (LC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
LC Profit Margin, ROE & Profitability Analysis
LC vs Finance Sector: How LendingClub Corp Compares
How LendingClub Corp compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is LendingClub Corp Stock Overvalued? LC Valuation Analysis 2026
Based on fundamental analysis, LendingClub Corp has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
LendingClub Corp Balance Sheet: LC Debt, Cash & Liquidity
LC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: LendingClub Corp's revenue has grown significantly by 51% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.36 reflects profitable operations.
LC Revenue Growth, EPS Growth & YoY Performance
LC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2020 | $74.7M | -$383.0K | N/A |
| Q2 2020 | $43.9M | -$9.6M | N/A |
| Q1 2020 | $120.2M | -$19.9M | N/A |
| Q3 2019 | $184.6M | -$383.0K | $0.00 |
| Q2 2019 | $177.0M | -$9.6M | $-0.12 |
| Q1 2019 | $151.7M | -$19.9M | $-0.05 |
| Q3 2018 | $138.9M | -$6.5M | $-0.02 |
| Q2 2018 | $136.9M | -$25.4M | $-0.06 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
LendingClub Corp Dividends, Buybacks & Capital Allocation
LC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for LendingClub Corp (CIK: 0001409970)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LC
What is the AI rating for LC?
LendingClub Corp (LC) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 67% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LC's key strengths?
Claude: Strong reported net margin of 19.8% and operating margin of 25.8%. Substantial cash reserves of $821.9M providing near-term liquidity buffer. ChatGPT: Significant YoY net income and EPS growth. Healthy profitability (18.4% operating margin; 14.1% net margin).
What are the risks of investing in LC?
Claude: Severe negative operating cash flow of -$619M signals poor earnings quality and unsustainable business model. Interest coverage ratio of 0.8x indicates inability to cover interest from operations—existential solvency risk. ChatGPT: Top‑line decline (-3.7% YoY revenue). Very weak cash flow (large negative OCF and FCF).
What is LC's revenue and growth?
LendingClub Corp reported revenue of $261.2M.
Does LC pay dividends?
LendingClub Corp does not currently pay dividends.
Where can I find LC SEC filings?
Official SEC filings for LendingClub Corp (CIK: 0001409970) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LC's EPS?
LendingClub Corp has a diluted EPS of $0.44.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is LC's fundamental grade?
Based on our AI fundamental analysis in May 2026, LendingClub Corp has a C grade with 67% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is LC stock overvalued or undervalued?
Valuation metrics for LC: ROE of 3.4% (sector avg: 12%), net margin of 19.8% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is LC's AI grade for 2026?
Our dual AI analysis gives LendingClub Corp a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LC's free cash flow?
LendingClub Corp's operating cash flow is $-619.0M, with capital expenditures of $25.8M. FCF margin is -246.8%.
How does LC compare to other Finance stocks?
Vs Finance sector averages: Net margin 19.8% (avg: 25%), ROE 3.4% (avg: 12%), current ratio N/A (avg: 1.2).